Canaries facing cash black hole
Sarah BrealeyNorwich City face a �2.9m black hole in their finances next season - and the board is still in negotiations with the two major lenders to secure their continued support.Sarah Brealey
Norwich City face a �2.9m black hole in their finances next season - and the board is still in negotiations with the two major lenders to secure their continued support.
Chairman Alan Bowkett and chief executive David McNally shared the news at a press conference this afternoon to confirm the club's overall debt of �23m.
They also confirmed a �5m loss in 2008/9 and a reduction in turnover from �19.2m to �18.2m.
Bowkett said 'tough' negotiations had taken place with Axa and with Lloyds Banking Group, which resulted in 'a good football budget that allows the team to compete'.
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The two lenders have re-negotiated their loans until the end of the current season, but talks are ongoing to try to extend that into 2010/11.
Bowkett said: 'The figures make grim reading but we've taken the club by the scruff of the neck. Thankfully our lenders have been very supportive.'
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McNally said moves had been made to cut costs when the pair joined the board in the summer. He said a clutch of employees were made redundant during the autumn. He would not confirm the exact figure, but said it was 'fewer than 20'.
t For the full story, see today's paper.